1099 Tax Form Information

By Charlie Sim
1099 tax form information

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Federal 1099 forms are used by businesses to record the income of independent contractors, or freelance workers, throughout a tax year. This form contains information about wages earned, and other pertinent information about the business. The 1099 is different from a W2 form, which states federal and state tax deductions, social security deductions, and deferments to employees. Taxes and Social Security deductions are not paid by the business for freelance workers, and it remains the responsibility of the wage earner to pay taxes on money earned as stated on a 1099 form.

Qualification

If you are an independent contractor, a freelance worker or per diem worker such as an actor, contractor or artist, you may have earned income that has qualified you for a 1099 form. In the event that you worked for a business as a freelance worker, you will be mailed a 1099 form for all income received the previous year.

Content

A 1099 form states the wage earner's information, the business that paid the wage earner, the income earned and other information that can be used when filing taxes for the year.

Warning

Federal 1099 forms state income earned during a given year. It is the responsibility of the wage earner to pay all taxes owed to state and federal authorities, since no tax and no Social Security contributions were deducted from income earned during the year.

Misconceptions

A 1099 form is not the same as a W2 form, which states information such as income earned, taxes paid, other deductions and deferments. A W2 form is for employees whose exemptions have been previously declared by a W4 form when the employee first started working for the business. An employee is not required a to fill out a W4 form to receive a A 1099 form.

Considerations

If you have worked for a company as a freelancer and earned income, you should receive a 1099 form. If you have not, you will need to contact the business to ask for one to be sent to you. Another important consideration for 1099 workers, one that adds up to significant amounts owed, is that Social Security deductions are not automatically taken out and must be paid by the worker when filing taxes.

About the Author

Charlie Sim is a professional writer with experience in corporate copywriting and business proposal writing for the pharmaceutical industry, as well as technical writing in XML for the U.S. government. He has also been published on Trails.com and eHow. He is a graduate of Rutgers University.